Rent rises as supply falls

The average rent in South Dublin city rose by 5.1% during 2012, yet the number of properties available to rent nationwide is at its lowest since mid 2008.

According to a report by Daft.ie, the average rent on the Southside of the city in 2012 was €1,160 a month.

The report states that the average cost of a two-bedroom apartment in Dublin 8 was €1,044.

Just 2,100 Dublin properties were available to rent on 1 February 2012. The only time when there were fewer listings was from February to May 2007.

Economist Ronan Lyons commented, “It is increasingly evident that there is a shortage of rental properties on the market in urban areas, and in particular Dublin. This may be alleviated temporarily by stock currently held in NAMA coming on to the market, but ultimately Ireland’s major cities will need to prevent future inflation in rents by planning for new construction.”